Gold in AUD (and Euro) has been rising steadily through Sept and is now around its 12 and 18 month average while gold in USD has been falling steadily since Aug. It looks more a case of a stable gold price overall but a strengthening USD and weaker AUD and Euro changing the relative price of gold against each of those currencies.
If gold manages to reverse its fall against USD soon (above or at its 1180 double bottom) and AUD remains weak (thanks to weakened iron ore price and partial rebalance of US interest rates vs Aussie rates) then AUD POG might move significantly above its current 12 and 18 month average price. US gold producers are being increasingly pressured but for Aussie producers the gold price is holding while they have been gradually cutting costs. This mini rally of September of gold against AUD might accelerate if POG reverses against USD into the Asian buying season (possibly on short covering triggered by increasing Asian buying). A decent amount of short covering hasn't been seen for a while.
DRM Price at posting:
50.0¢ Sentiment: None Disclosure: Not Held
RRL Price at posting:
$1.62 Sentiment: Hold Disclosure: Held
